Brent oil tops $90 after US-Iran fighting resumes in Strait of Hormuz
Military strikes between Washington and Tehran push crude prices sharply higher as traders brace for potential supply disruptions through the world's most important oil chokepoint
Brent crude futures surged roughly 2.8% on August 31, breaking above $90 per barrel for the first time in nearly two weeks. The catalyst: US and Iranian forces exchanging military strikes in and around the Strait of Hormuz, the narrow waterway through which a significant share of the world’s seaborne oil flows.
The jump to around $90.53 to $90.61 per barrel came after both benchmarks had slumped more than 4% over the preceding week. West Texas Intermediate, the US pricing benchmark, climbed in sympathy to roughly $85.23 to $85.53.
What happened in the Strait
US forces struck two Iranian rocket launchers positioned on Larak Island, a strategically located outpost in the Strait of Hormuz. According to reports, the launchers were allegedly being prepared to mine the strait, a move that would have threatened the free passage of tankers through one of the most critical energy corridors on the planet.
Iran responded with missile attacks targeting two US air bases in Jordan. Local defense systems intercepted the incoming fire, preventing casualties on the ground.
President Donald Trump posted on social media about destruction on Kharg Island, Iran’s primary oil export terminal. No independent confirmation of strikes on Kharg Island has surfaced.
Macro, rates, and crypto—what moved markets and what matters next.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
This exchange marks the first direct military confrontation between the US and Iran in over a month. The broader conflict traces back to late February 2026, meaning the two countries have been locked in a pattern of escalation and temporary de-escalation for roughly six months now.
Why $90 matters
Analysts tracking the situation suggest that absent a major new escalation, Brent could settle into a trading range between $85 and $95 per barrel. The floor is supported by ongoing geopolitical risk. The ceiling is held in place by the fact that global demand growth has been tepid and inventories outside the Gulf region remain adequate.
Traffic through the Strait of Hormuz has been running significantly below pre-conflict levels for months. Shipping companies have been rerouting cargoes or paying elevated insurance premiums to transit the waterway, adding friction costs that ripple through the entire petroleum supply chain.
The sanctions complication
US officials have reiterated their intent to maintain and potentially intensify secondary sanctions targeting Iranian oil exports. These sanctions are designed to choke Tehran’s revenue by penalizing any entity, in any country, that facilitates Iranian crude sales.
The next data point to watch is whether Iran attempts to follow through on mining the Strait of Hormuz. If that threshold is crossed, the $85 to $95 range that analysts are projecting would likely break to the upside.